IRT(US:IRT)2025-10-29 20:05Financial Performance - Q3 2025 EPS was $0.03, with Core Funds from Operations (CFFO) per share at $0.29, consistent with expectations[10] - Net income available to common shares for Q3 2025 was $6,893,000, a decrease of 14.4% from $8,046,000 in Q2 2025[41] - Total revenue for the three months ended September 30, 2025, was $167,138,000, an increase of 4.4% compared to $160,135,000 for the same period in 2024[46] - Funds From Operations (FFO) for the three months ended September 30, 2025, was $71,104,000, up from $68,258,000 in the same period last year, representing an increase of 2.6%[48] - Core Funds From Operations (CFFO) for the three months ended September 30, 2025, was $69,987,000, compared to $66,802,000 for the same period in 2024, reflecting a growth of 3.3%[48] - Net income for the three months ended September 30, 2025, was $6,995,000, compared to a net income of $12,620,000 for the same period in 2024, representing a decrease of 44.5%[49] - Adjusted EBITDA for the three months ended September 30, 2025, was $92,643,000, an increase of 5.0% from $87,453,000 in the same period of 2024[49] Revenue and Occupancy - Same-store Net Operating Income (NOI) grew by 2.7% in Q3 2025 compared to Q3 2024[14] - Rental revenue increased by 1.4%, while property operating expenses decreased by 0.7%[10] - Same-store occupancy rate was 95.6% at the end of Q3 2025, with a resident retention rate of 60.4%[10] - Total rental and other property revenue for the three months ended September 30, 2025, was $166,888,000, up from $159,860,000 in the same period of 2024, indicating a growth of 4.3%[50] - Average occupancy remained stable at 95.3% for the three months ended September 30, 2025, consistent with the same period in 2024[53] - Total same-store portfolio net operating income for the nine months ended September 30, 2025, was $280,621,000, representing a 2.7% increase compared to $273,350,000 in 2024[56] Expenses and Debt - Total expenses for the three months ended September 30, 2025, were $136,649,000, an increase from $129,192,000 in the same quarter of 2024[48] - Interest expense for the three months ended September 30, 2025, was $20,455,000, an increase from $18,308,000 in the same quarter of 2024[48] - As of September 30, 2025, the company's net debt to Adjusted EBITDA was 6.0x, with a weighted average effective interest rate of 4.3% on consolidated debt[23] - Total debt stood at $2,296,202,000 as of September 30, 2025, compared to $2,249,801,000 in June 2025[45] - Total liabilities increased to $2,477,332,000 as of September 30, 2025, from $2,411,666,000 in June 2025[45] Renovations and Acquisitions - The company completed 788 renovations in its Value Add Program during Q3 2025, achieving an average ROI of 14.8%[10] - Two communities were acquired in Orlando for a total of $155 million, increasing exposure in the area from 617 units to 1,260 units[18] - The company has committed to invest $20.0 million in a joint venture for a new multifamily project in Indianapolis, Indiana[25] - In 2025, the company acquired 923 units across three properties for a total purchase price of $214.5 million, averaging $232 per unit[62] - The company disposed of 720 units at Ridge Crossings for a sale price of $111 million, averaging $154 per unit[63] Guidance and Future Expectations - The company reaffirmed its full-year 2025 guidance midpoints[10] - The updated 2025 EPS guidance is between $0.27 and $0.28, reflecting a decrease of $0.23 at the midpoint compared to previous guidance[27] - The company anticipates property revenue growth of 1.6% to 1.8% for the same-store portfolio in 2025[31] - The acquisition volume for 2025 is projected to be $215 million, significantly lower than the previous estimate of $580 million to $650 million[31] - The company expects to close the sale of the Jamestown at St. Matthews property at a gain of approximately $18.0 million by year-end 2025[25] Market and Asset Management - Total gross assets reached $7,058,026,000 as of September 30, 2025, an increase from $6,874,320,000 in June 2025[41] - The total gross real estate assets amounted to $6,645,855,000 as of September 30, 2025[57] - The total number of properties in the portfolio is 115, with an average occupancy rate of 95.1%[57] - The company has approximately $628.1 million in liquidity as of September 30, 2025, from cash and cash equivalents[23] - The company maintains hedges totaling $1,050,000, effectively fixing a portion of its floating rate debt[75]